Thai July domestic car sales tumble 24.8% year-on-year - industry federation

[webfact]

Thai July domestic car sales tumble 24.8% year-on-year - industry federation

 

FILE PHOTO: Vehicles are seen stuck in traffic along a road in Bangkok, Thailand December 18, 2018. REUTERS/Soe Zeya Tun

 

BANGKOK (Reuters) - Domestic car sales in Thailand shrank for a 14th straight month in July, dropping 24.8% from a year earlier to 59,335 vehicles as the coronavirus outbreak crushed demand, the Federation of Thai Industries (FTI) said on Thursday.

 

But sales rose 2.28% from June, helped by easing virus restrictions and Bangkok's international motor show, it said.

 

In June, car sales declined 32.6% from a year earlier.

 

Thailand is a regional vehicle production and export base for the world's top automobile manufacturers.

 

(Reporting by Satawasin Staporncharnchai; Writing by Orathai Sriring; Editing by Shri Navaratnam)

 

-- © Copyright Reuters 2020-08-20

 

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[4MyEgo]

I think it's going to get worse, no have, no can do will be the theme, i.e. until they start the zero % interest for 5 years with no repayments for 12 months, bag a bargain so to speak, after 12 months they can come and get it, no have, no can do still ????

 

Edited August 20, 2020 by 4MyEgo

[RotBenz8888]

Time for new "first car scheme". 

[Surelynot]

14 months! So the economic decline was well up to speed well before covid....scary.

[JoePai]

I tried to buy a car last month but was told delivery 3 months!

[OneMoreFarang]

39 minutes ago, webfact said:

car sales tumble 24.8% year-on-year

That's good news, correct?

 

Or maybe next the gasoline stations and companies will complain that people buy less gasoline than a year ago. I think that would be great news!

[edwinchester]

Been looking for a small car for wifey and it's remarkable the lack of deals to be had and the lack of interest the sales people have in actually making a sale. No movement on the price, little in the way of thrown in extras and agree with one of the above posts that delivery times are ridiculous. Small wonder the industry is at rock bottom.

Edited August 20, 2020 by edwinchester

[Aussie Col]

Things are going to get a lot worse yet yet with so many Thais out of work due to lack of Farang tourists

[Puchaiyank]

Thai convoluted sales philosophy:  Sales down...raise price!  I am not kidding!

[Aussie Col]

33 minutes ago, Puchaiyank said:

Thai convoluted sales philosophy:  Sales down...raise price!  I am not kidding!

= every day that passes Thailand sinks to an ever deepening abyss

[Cake Monster]

2 hours ago, JoePai said:

I tried to buy a car last month but was told delivery 3 months!

The Cars that are now being registered as new, will have been purchased ( ordered ) way back in March.

March was when Covid was  going to be all over and done with by June in the eyes of many Thais, so they just went ahead and bought that new car, thinking Covid was no  worse than a Head Cold..

August / September figures could be even worse, as the Covid threat  was well and truly here by the ordering time of April / May.

[JonnyF]

I can't say I'm surprised. Notwithstanding C19, there are only about 10 models available in Thailand, and they are much higher priced and lower spec'd than the same models in Europe. The choice and value for money are pitiful.

 

The only good value for money vehicles here are pickups and small motorcycles.

 

I'm amazed this hasn't happened sooner.

[hotchilli]

4 hours ago, webfact said:

Domestic car sales in Thailand shrank for a 14th straight month in July, dropping 24.8% from a year earlier to 59,335 vehicles as the coronavirus outbreak crushed demand, the Federation of Thai Industries (FTI) said on Thursday.

Which will have a devastating knock-on affect with the smaller SME's supply chain.

[Thomas J]

3 hours ago, edwinchester said:

Been looking for a small car for wifey and it's remarkable the lack of deals to be had and the lack of interest the sales people have in actually making a sale. No movement on the price, little in the way of thrown in extras and agree with one of the above posts that delivery times are ridiculous. Small wonder the industry is at rock bottom

edwinchester

 

You are right.  Even the used cars the people seem to think they are still worth almost as much as when they bought them new.  I guess so long as all the sellers are of the mind set that they don't have to lower prices, then prices will remain high.  However you would think with sales being slow they would want to sell to whoever was willing to buy.  

[Deli]

1 hour ago, Cake Monster said:

The Cars that are now being registered as new, will have been purchased ( ordered ) way back in March.

March was when Covid was  going to be all over and done with by June in the eyes of many Thais, so they just went ahead and bought that new car, thinking Covid was no  worse than a Head Cold..

August / September figures could be even worse, as the Covid threat  was well and truly here by the ordering time of April / May.

But it's still a head cold. People only got brainwashed in the meantime

[MRToMRT]

Wait until the repo numbers start. Going to be lots of second hand inventory on the market then as well.

[alyx]

4 hours ago, Aussie Col said:

= every day that passes Thailand sinks to an ever deepening abyss

Isn't an abyss bottomless, by definition ?  555

[RichardColeman]

Yet again we have evidence of the destruction of the thai economy - car sales down 25%, foreign tourism down 75-80% this year, exports down 15-20% by end year. 750,000 unemployed, near 2 million furloughed. Shops and bars closing, numbers of houses and businesses for sale rising, rents dropping, etc

 

And yet those in charge predict a 7.5% gdp drop. Kind of a shame there is not a new government tomorrow that actually publishes the unadulterated figures and shows the lying manipulating people in charge for what they are

[Artisi]

Don't worry, Thai tourist authority will be along soon to beat up the numbers to a 75% increase in sales by year end. 

[Chongalulu]

2 hours ago, Thomas J said:

edwinchester

 

You are right.  Even the used cars the people seem to think they are still worth almost as much as when they bought them new.  I guess so long as all the sellers are of the mind set that they don't have to lower prices, then prices will remain high.  However you would think with sales being slow they would want to sell to whoever was willing to buy.  

Just wait it out until harsh reality and economics gets through the thick layers of mud surrounding their brains.

[koosdeboer]

17 hours ago, edwinchester said:

Been looking for a small car for wifey and it's remarkable the lack of deals to be had and the lack of interest the sales people have in actually making a sale. No movement on the price, little in the way of thrown in extras and agree with one of the above posts that delivery times are ridiculous. Small wonder the industry is at rock bottom.

I have just bought a new car 3 weeks ago and got a 75000 THB discount and a lot of extra's. Delivery in 5 days. That's because of the long weekend that time and because they had to put in the (free) dark foil. I've been to many dealers and all of them offered discounts and extra's.

[edwinchester]

1 hour ago, koosdeboer said:

I have just bought a new car 3 weeks ago and got a 75000 THB discount and a lot of extra's. Delivery in 5 days. That's because of the long weekend that time and because they had to put in the (free) dark foil. I've been to many dealers and all of them offered discounts and extra's.

Good to know that and you've had better luck than me.

What model did you buy?

[superal]

18 hours ago, edwinchester said:

Been looking for a small car for wifey and it's remarkable the lack of deals to be had and the lack of interest the sales people have in actually making a sale. No movement on the price, little in the way of thrown in extras and agree with one of the above posts that delivery times are ridiculous. Small wonder the industry is at rock bottom.

Yeh agree and the on;y deal in Thailand seems to be a delay of 3 months on the first instalment , free ins 1 year and maybe labour free service 1 year but these are standard offers that have been around for a few years and paid for within the car purchase price  which your gonna pay for in the long run .  At this time the UK have similar sales problems and have reacted by asking zero deposits , zero interest rates and free insurance , service and break down . Its more about survival than profit at the moment but the Thai business sense is put the price up if sales are down , reverse logic .      Most new car sale showrooms are franchised I am told and the manufacturer dictates the price . Does anyone know the profit margin for the 2 businesses above ? Maybe leasing is a better option ?

[koosdeboer]

On 8/21/2020 at 8:22 AM, edwinchester said:

Good to know that and you've had better luck than me.

What model did you buy?

I keep it private but I have been to different dealers and all of them gave discount if paid cash.